Implementing Supply Routing Optimization in a Make-To-Order Manufacturing Network
John Foreman, Jérémie Gallien, Julie Alspaugh, Fernando Lopez, Rohit Bhatnagar, Chee Chong Teo, Charles Dubois (2008), submitted to Manufacturing & Service Operations Management [full paper].
Press Coverage: Information Week, August 2008

Dell's supply chain for desktops involves Asian vendors shipping components by sea to several U.S. plants. While suppliers are responsible for shipping enough inventory, Dell can re-route and expedite their shipments while in transit and also transfer on-hand inventory in order to balance supply across sites. This paper describes the development, implementation and impact of the process and optimization-based control system now used by Dell to address this supply routing challenge for its US-bound monitors. This new methodology is estimated to have reduced Dell's inventory re-positioning costs for monitors by about 60%.